The study investigated issues concerning procurement and administration in the Department of Health (DoH) in the Eastern Cape and has further investigated the role of the implementation of the Public Finance Management Act (PFMA), Act 1 of 1999 in the department. That included issues associated with the administration and procurement in relation to service providers from the private sector. The DoH in the Eastern Cape Province delivers:“ … a quality health service to the people of the Eastern Cape Province promoting a better life for all and ensures accessible, comprehensive, and integrated services in the province, emphasising the primary health care approach, as well as utilising and developing all resources to enable present and future generations to enjoy good health and quality of life” (Department of Health [DoH], Eastern Cape, Departmental Annual Performance Plan, 2013:3). Various researchers have investigated the implementation of the PFM Act 1 of 1999 and have identified gaps and made recommendations regarding the identified gaps. The study is based on the following reports from various authors: According to Pillay (2013), since 1994 every public sector department has lost approximately R385 billion to fraud, corruption and maladministration. Government employees have accepted kickbacks in exchange for rigging tenders, including focusing on high levels of corruption (Albert, 2011:1). The fraud and corruption in the Eastern Cape DoH, which involves nepotism, corruption and fraud amounting to a million rand in the audit report of 2013, have prompted calls by the opposition for interventions (PricewaterhouseCoopers [PWC], 2013:9). Departmental Annual Performance Plan for 2013/2014. Impact of accountability and ethics on public service delivery: a South African perspective which involves accountability stating that all government departments have to be efficient to ensure value for public funds including the qualitative and value-laden expectations of the society (Raga & Taylor, 2008:1). EC (2010:9), Audit Report: Health Department, Eastern Cape. King III Report (2009) – Corporate Governance. The study has built on previous research conducted by other researchers who have conducted research on the issue of the implementation of the Public Finance Management Act 1 (PFM Act 1) of 1999, and had identify further gaps not previously identified by other researchers or in the audits. In addition, this study aims to also identify shortcomings that have been described in the recent audits 2013/2014 of the DoH, Eastern Cape. Together with the new gaps identified in the PFM Act 1 of 1999, the researcher aims to make a number of recommendations to improve the effectiveness of the implementation of the PFM Act 1 of 1999. The PFM Act 1 of 1999 was promulgated by the South African government in 1999. The Act promotes the objective of good financial management in order to maximise service delivery through effective and efficient use of available limited resources as well as credible interaction with private sector service providers. A key objective of this Act is to put in place a more effective financial accountability system over public entities. The objectives of the Act are to: Modernise the system of financial management, Enable public sector managers to manage, while at the same time being accountable, Ensure timely provision of quality information, To eliminate waste and corruption in the use of public assets.

When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method

Anti-corruption measures are put forward as a panacea to effective procurement system, among other things, which ultimately improve service delivery. Corruption has demonstrated remarkable durability and flexibility to survive in all socio-economic systems with the conception of a corruption-free economy in reality, is hardly possible. Given this background, this study sought to evaluate the efficacy of the already implemented anti-corruption measures in the procurememt procecesses of Marondera municipality. To understand their effectiveness, relevant literature was reviewed. Different scholars point against the ineffectiveness of these measures, with Corruption Perception Index (CPI) from previous research showing devastating results in Zimbabwean local institutions. A further discussion of corruption cenception, different anti-corruption measures and legal frameworks gave a greater understanding of the area under study. In this study, a sample of 80 respondents was identified and data collected from them using both snow ball and purposive sampling methods. Thirty-five of them were females respondents and forty-five were male respondents from Marondera municipal community, with different demographic characteristics which was used for comparison of responses. Questionnaires and interviews were used as research instruments. Both the Quantitative and Qualitative research methods were used in the anaylsis of the data, to increase validity and reliability of the feelings.

As part of the on going financial management reforms, the South African Government introduced the Supply Chain Management (SCM) Framework. Since 2004, The Eastern Cape Provincial Government embarked on a process of ensuring that procurement reforms wrought by the advent of SCM are seamlessly ushered in. Information Technology (IT) and systems are a sine qua non in supporting the implementation of the SCM Framework. However, IT does not operate in a vacuum. Many other factors complement, supplement and influence the objectives sought through the use of Information Technology and systems. It is the confluence of this factors that eventually will determine that success or failure of using technology to support procurement reforms in government. The research investigates the factors affecting the success of the Information systems underlying SCM in the Eastern Cape Provincial government. Data for the research was gathered using a questionnaire administered to all Eastern Cape Provincial Government departments. The research borrows from Heeks’ ITPOSMO model in assessing SCM and Information Systems structures and processes and gauging their state of readiness to embrace procurement reforms envisaged through the SCM Framework. Because of the importance of having a strong IT functional unit in any government department, the study highlights IT issues that typically confront IT managers, especially in the public sector. Heeks’ ITPOSMO model emerges as a sufficient framework for identifying gaps that currently exist between the reality and perceptions on the readiness of IT to adequately support government procurement reforms. The dissertation concludes that the success of the system is dependent not only on the technological component of the system, but also on other factors.

Thesis (MPA.) -- University of Limpopo, 2016 / The purpose of this study was to determine the effectiveness of administrative intervention in Supply Chain Management in the Department of Education in Limpopo. This was done with the aim of looking into the strategies that were put in place during the intervention process and to examine whether the strategies have yielded the desired results of stabilising the department’s finances and averting the possible collapse of essential services. Qualitative data were collected, primarily in the form of semi-structured interviews using an interview schedule consisting of both closed and open-ended questions with the Chief Financial Officer, General Manager (SCM), Senior Manager (SCM), Manager Demand and Acquisition, six Supply Chain Management Practitioners, and two members of the Intervention Task Team. All these officials provided sufficient information related to the effect of the administrative intervention in the SCM of the Limpopo Department of Education. The study found that there were a number of strategies that were put in place by the members of the Intervention Task Team during the intervention process, such as : • Catering not exceeding R50.00 per person has to be provided only for meetings with external stakeholders and this provision only applied to meetings that take longer than five hours; • Promotional items such as t-shirts, caps, bags, etc., were not to be purchased by the department; • Engagement of consultants was also reduced to the minimal and it was only allowed where the department does not have the requisite skills or resources in its full time employ to perform the assignment in question; and • Trips by vehicles were to be optimised to reduce costs. However, the strategies that were put in place by the Intervention Task Team in the Supply chain management did not yield the desired results of stabilising the department’s finances and averting the possible collapse of essential services. Limpopo Department of Education continued to get an undesirable disclaimer audit iii opinion for the fourth consecutive year and the findings depicted poor administration and inability to comply with the treasury regulations.

Collectively, US public transportation systems operated 137,047 vehicles per peak period in 2008 (American Public Transportation Association 2010). Buses accounted for the largest segment among these vehicles, and the passenger van segment was second. Together, they accounted for 78% of the vehicles operated per peak period (American Public Transportation Association 2010). Due to their pervasive use in the public transportation industry, buses and vans have been the focus in various academic research studies. However, very few studies have focused on vehicle procurement. Further, none have focused on the specific vehicle procurement function of supplier evaluation and selection. The over-arching objective of this research is to gain a deeper understanding of the relative importance of vehicle supplier attributes in reference to the Federal Transit Administration's (FTA) “best-value” procurement initiative and the influence of these attributes on the evaluation and selction of bus and van suppliers. This research studies vehicle procurement decision-makers at public transportation agencies to determine which supplier attributes they perceive to be the most important when evaluating vehicle suppliers. Results indicate that the top five supplier attributes were quality, reliability, after-sales support, warranties and claims, and integrity. The order of these top five attributes changed according to the type of supplier being evaluated, i.e., conventional fuel vehicle supplier versus alternative fuel vehicle supplier. The reason for this change was explained as being due to the increased engineering and technological expertise required of alternative fuel vehicle suppliers. Utilizing Analysis of Covariance (ANCOVA), the research showed that the variation in the perception of the importance of particular supplier attributes was not generally influenced by an agency's urban classification, its vehicle fleet size, its capital expenditure level, its decision-makers' education level, or their years of experience. However, FTA region was determined to have an influence on two attributes. Utilizing a conditional logit discrete choice model, the research also found that in practice price and not quality had the highest parameter estimate and was therefore deemed most important. It was followed by quality, after-sales support, technical capability, and delivery. Further, to garner a deeper understanding of attributes' relative importance, participants in the research identified 41 attribute components and provided metrics by which to measure these components and, by extension, the attributes. This research contributes in four areas. These are government procurement initiatives, agency “best-value” procurement practice, vehicle supplier marketing, and academic research in supplier evaluation and selection in the public transportation industry.

M. Tech. (Department of Logistics Management, Faculty of Management Sciences), Vaal University of Technology. / Supply Chain Management (SCM) departments and, specifically, procurement functions, account for the largest expenditure in most organisations. However, their function has been misunderstood, undervalued, and under-capacitated, and their strategic importance not recognised. As a result, the majority of public agencies in South Africa are implementing their procurement practices poorly. The main research question of this study focused on procurement practices in the state-owned passenger rail agencies in the Gauteng province. A qualitative research method was adopted in which semi-structured interviews were employed to gather data regarding current procurement practices within the procurement function in the state-owned passenger rail agencies. Content analysis was utilised to analyse and interpret data collected from 12 procurement officials employed in the procurement functions within these state-owned passenger rail agencies in the Gauteng province. The findings of this study indicate that there are poor procurement practices within the state-owned passenger rail agencies in the Gauteng province regardless of government initiatives established to address lack of accountability, inconsistency in application of procurement policies, lack of supporting structures and fragmented processes. The detailed findings indicate that the procurement function is still regarded as an administrative function within the state-owned passenger rail agencies. Due to the procurement function still being regarded as an administrative rather than as a strategic function, the procurement function is still under-rated within the state-owned passenger rail agencies in the Gauteng province. The findings also establish that there is poor contract management during the procurement processes. Furthermore, the findings established that there is poor implementation of supplier management within multiple stages of the procurement processes in the state-owned passenger rail agencies in the Gauteng province. Due to poor procurement practices within the passenger rail agencies, eleven challenges were identified within the procurement functions. As a result of the above-mentioned challenges, this study recommends strategies that can be used to address the problems identified within the procurement functions of these state-owned passenger rail agencies in the Gauteng province.

The dissertation consists of a set of essays which investigate optimal contracting policies in the presence of asymmetric information and uncertainty. The first essay studies how risk aversion and a sunk investment by the firm influence the contracting outcome. The government contracts with a single, risk-averse supplier for the production of output. Both the government and the firm face uncertainty with respect to the marginal production cost of the item. Prior to full-scale production, the firm performs start-up work, during which it may make a costly investment which lowers the marginal cost of production. This cost-reducing effort is not observable by the government. At the end of the start-up phase, the firm privately learns its production cost. It then reports to the government concerning this cost, and production takes place according to the terms of the contract. The primary result concerns the effect that the firm’s investment has on the private information problem. Specifically, the investment by the firm in the start-up phase reduces the firm’s incentive to misrepresent (overstate) its cost to the government later on. From this, it follows that the firm provides a strictly smaller investment than the government would prefer under the optimal contract. The second essay examines the optimal incentive contract to offer to bidders with independent private values when it is costly for the principal to monitor the agent’s cost performance ex post. Cost sharing reduces the winner’s informational rents when the bidders possess heterogeneous private cost information but also discourages the agent from providing effort to reduce cost. In addition, if cost observation is costly for the principal, cost sharing gives the agent an incentive to pad his cost ex post. The essay investigates the consequences of this ex post adverse selection problem for the optimal incentive contract. The principle results of the analysis are as follows. First, it is demonstrated that when monitoring is costly, a low cost agent will overreport his realized cost with positive probability in equilibrium. Depending upon the cost sharing parameter, the equilibrium cost reporting and monitoring strategies may either involve pooling or a mixed strategy solution. Second, we show that the optimal contract with costly monitoring generally differs from the contract which is optimal when monitoring is costless. Depending upon the characteristics of the contracting environment, the optimal contract may induce either pooling or a mixed strategy outcome ex post. If the optimal contract involves pooling, the ‘costly monitoring’ cost sharing parameter is weakly smaller than the optimal cost sharing parameter with costless monitoring. If the optimal contract induces a mixed strategy equilibrium, the optimal level of cost sharing is strictly higher than the optimal cost sharing parameter when monitoring is costless. Finally, our model predicts that, other things equal, the level of cost sharing should be higher, the smaller the number of bidders and the more diffuse the bidder’s expected costs. / Ph. D.

This study of bureaucratic behavior is from the perspective of a particular federal government operations process - the management and delivery of computing services to the federal agencies. It supports the idea that federal bureaucrats are utility maximizers. The first of the two theories considered in this thesis is based upon William Niskanen's hypothesis that the primary objective of the government bureaucrat is to maximize the bureau's budget through the maximization of output. The second theory is based upon Jean-Luc Migue’s and Gerald Belanger's hypothesis that the objective of bureaucrats is to maximize "discretionary budget” - the difference between the bureau's total budget and the cost of producing the bureaus authorized output. This thesis contends that the maximization of discretionary budget is the maximand of the federal bureaucrat evaluating the computer investment decision. / Master of Urban Affairs

University of Macau / Faculty of Law